2007 House Values May Rise a-Grand-a-Month 2007-01-28Posted by clype in Money, Statistics.
There have been warnings that a string of UK interest rate rises — including a shock January hike from 5 per cent to 5.25 per cent — would cool the market with some experts predicting a correction in house prices of between 15 per cent and 20 per cent.
However, a leading ‘think-tank’ report by ‘The Centre for Economics and Business Research‘ (‘The CEBR’) said it saw no evidence that increased interest rates would hit the cost of homes, and suggested that Britain’s housing boom will continue in 2007, with average prices rising by 7.6 per cent — 1000 GBP/month.
‘The underlying fundamentals of the housing market continue to support prices,’ said Mr.John Ward, one of the report’s authors.
‘Even though interest rates may act as a dampener on the market people are spending considerable less of their incomes on mortgages than in the early 1990s.
‘Furthermore, in many parts of the country, shortages remain acute.’
- However, slower growth is predicted in 2008 and 2009 before acceleration again in 2010.
- The average UK house price was 187 000 GBP and was likely to be 225 000 GBP by 2010.
Other recent research showed homeowners in Northern Ireland were 2006’s biggest property winners, with towns in the region seeing the largest house price hikes across the UK.
And a survey from Halifax Estate Agents also found London and the south east of England registered strong price growth, buoyed by high city bonuses and a shortage of housing supply.
- ‘UK home price ‘up £1,000 a month’‘, BBC NEWS, 2007/01/28